To help support the integration of waste-to-energy (WtE) into the country, Makati Business Club (MBC) suggested opportunities that could grow this renewable energy (RE) technology, including cooperation from local government units (LGUs).

During a public-private sector roundtable between the Department of Energy (DOE), Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), as well as WtE developers, utilities, and waste service providers, MBC led a discussion of strategies that could grow this form of clean energy in the near future.

This included policy shifts that accommodate WtE, fair pricing mechanisms, and LGU coordination, among others.

According to MBC, the local government’s role in WtE could help make the technology viable by pooling their area’s waste supply. It also noted that national agencies are already assessing regions where this could be feasible.

”Most local governments don’t generate enough waste to support WtE projects on their own,” it said.

However, while LGU collaboration can help, MBC noted that this could be costly as well, noting that ”for many LGUs, sending waste to a landfill is still the cheaper option. One reason is that the fees paid to dump waste often do not reflect the full cost over time.”

”These fees usually cover only the immediate expense and not the added costs of hauling waste long distances, managing landfill sites, or dealing with environmental effects later on. Some participants shared that understanding these full costs could help in deciding where WtE might be a better fit.”

It also emphasized that WtE is costly due to the handling and processing of waste; therefore, the power generated from this technology should be sold at fair and reasonable price points.

MBC also acknowledged the need for policy shifts that would further welcome renewable technologies, such as the next round of the Green Energy Auction (GEA), which is anticipated later this year.

”The DOE is set to include WtE and biomass in its next RE auction by the fourth quarter of 2025. This move could open the door for more WtE projects to access long-term power contracts. Recent policy updates also clarified that WtE may be eligible for incentives under the RE Law, even if the waste used is not primarily organic,” MBC stated.

Earlier this year, the DOE expressed plans to hold a separate GEA for biomass and WtE technologies as it is currently looking into developing the bidding terms of reference (TOR).

While WtE may garner high interest from private stakeholders and the government, these stakeholders hope for ”strong leadership, clear institutional roles, and better alignment across agencies and LGUs to be important. A system-wide view of procurement, infrastructure, and governance can help reduce risks and improve project outcomes.”